Recent Investments

We expect our recent investments to significantly strengthen our position as a leader in providing differentiated solutions for the energy, industrial and automotive market sectors, while enhancing our operational performance and customer service capabilities.

On Oct. 21, 2014, we ran the first heat of steel through our new jumbo bloom vertical caster at our Faircrest Steel Plant based in Canton, Ohio. The caster, combined with a recent investment in a new ladle refiner, will improve productivity, increase capacity and expand our product range, which will provide large bar capabilities unique in the United States. This project aims primarily to serve the energy and industrial market sectors.

We announced in July 2014 that we plan to open an advanced quench-and-temper facility in Canton to produce more value-added steel for demanding applications. The facility will be fully operational within two years and have capacity for 50,000 process-tons annually of 4-inch to 13-inch bars and tubes. It will be larger than each of the company's three existing thermal treatment facilities in Canton.

We completed a steel tube finishing line project in February 2013. This investment focused on quality, efficiency improvements and safety. The new intermediate finishing line increases operational efficiencies by incorporating the latest technologies and employing lean processes, significantly reducing product handling and material movements. The line advances testing quality, reduces processing times and incorporates an environmentally friendly water jet de-scaling spray system that replaces the former pickling process. The finishing line provides us flexibility to react better to the changing needs of our customers.

In addition, we completed an in-line forge press in December 2012. The 3,300-ton forge press offers our customers sound-center engineered steel bars. The investment provides an opportunity to focus on new markets, and adds additional capacity and operating efficiencies. The forge press uses an innovative large-bar forged-rolled process, which we developed and installed to enhance center soundness of a larger cross-section of our SBQ steel. Combined with our recent investment in an ultrasonic test large-bar inspection line, the new forging capabilities reinforce our position as a premier provider of sound-center large bars of up to 16 inches in diameter.

These investments reinforce our position of offering the broadest SBQ and seamless mechanical tubing steel capabilities in North America.